(2014-09-04, 10:35 PM)Tryst Wrote: Hi Isatrader, do you ever see this kind of volume multiples on FTSE100 Companies? So breakouts on such mammoth equities still brings with it 3-4x volume?
It's very rare on large cap FTSE 100 stocks to get a weekly volume at those levels for sustained periods, which is why they don't come up in the UK watchlist very often, as it's a key metric of my scans. Like I said previously, it's much more common to see the more dramatic shifts in volume in less well known names, that might become the household names of the future. Every heard of TUNG.L? I haven't. But it's come up in my scans a few times the last few weeks due to it's breakout from a nice consolidation with good volume for a UK stock on the up moves and is already in the FTSE AIM UK 50, and so looks more promising to me than a lot of UK stocks currently, and is something I'm considering doing more research on.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
(This post was last modified: 2014-09-05, 01:35 PM by theory6453.)
RE: Beginners Questions
(2014-09-03, 09:57 AM)bluemosaic Wrote: With your watchlist stocks, how do you manage them from watchlist to purchase?
For example, Dixons CarPhoneWarehouse has gained 3 pts today and I am looking at it just after the market has opened thinking 'should I order now or wait for the market to settle nearer 11am UK time or wait until almost close to see what volume was like for the day and then open the order. I am thinking latter .
I could put an order in for the buy but then you cannot determine volume and also the spread at that time of day may be wide
Thanks!
BlueMosaic - Check out the "Quick Reference Guide on Buying" in Chapter 4 of Stan's book (it's on page 115 of my copy). He speaks to how to position your entry and what to do from there depending on the volume levels.
On some level, you're going to have to just jump in with both feet when the conditions are right and follow the method. You may consider keeping your stops tight at first, so that if the trade moves against you, you only take a small hit. Don't be super-concerned or scared about making a wrong move or taking a small loss... imo keep your positions fairly small and worry more about getting comfortable with the method and learning from your mistakes. As you gain more experience, you will start to get a better feeling of what and what not to look for... You'll never learn to ride though until you get up on the horse!
Cheers,
Mike
I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times, I've been trusted to take the game winning shot and missed. I've failed over and over again in my life. And that is why I succeed. - Michael Jordan
I know I won't be the first having looked at this, so I'm hoping someone has already found the answer: I want to be able to trade the index rather than a stock within the index.
How can I do this, within an ISA/SIPP?
Is there such a thing as an ETF of just one sector? or a unit trust for example
And where can I trade this, do I need a broker that allows this?
Given that the index is an average of its individual components, it seems to perform far better than even an individual stock using the weinstein method.
An example is:
Fixed Line telecom sector within UK.
Best chart is BT, worst chart is COLT
We'll never know which stock is going to perform the best, so we may have been unlucky in getting into COLT, rather that BT yet the index itself conveniently aggregates all the movements into incredibly smooth trending charts.
Ultimately I'd like to combine my portfolio of individual stocks, AND the index itself.
(2014-10-11, 01:29 PM)malaguti Wrote: I know I won't be the first having looked at this, so I'm hoping someone has already found the answer: I want to be able to trade the index rather than a stock within the index.
How can I do this, within an ISA/SIPP?
Is there such a thing as an ETF of just one sector? or a unit trust for example
And where can I trade this, do I need a broker that allows this?
Given that the index is an average of its individual components, it seems to perform far better than even an individual stock using the weinstein method.
Deutsche bank does the only option I know of that can be traded in a SIPP or ISA, which are the STOXX 600 Sector ETFs, but it only covers the broader sectors and includes the whole of Europe. XS7R.L, XSPR.L, XS3R.L, XSDR.L, XSNR.L, XSIR.L, XSER.L, XS8R.L, XSKR.L, XS6R.L
For the UK sectors the only direct way to trade them that I know of is through IG Index, as they let you trade 30+ of the UK sectors that I show on here. But don't include some of the smaller sectors that only have a few stocks in them. However, this is spread betting and CFDs only as it's IG and so can't be done in an ISA or SIPP.
One thing to consider with trading sectors and indexes is that they are only averages of the individual stocks in them, and hence will only provide average returns. In order to generate above average returns for your portfolio overall you generally need to hit a few out of the park with 100%+ returns, as those big winners then cover the losers and mediocre returns of all the rest.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
(2014-10-11, 02:21 PM)isatrader Wrote: Deutsche bank does the only option I know of that can be traded in a SIPP or ISA, which are the STOXX 600 Sector ETFs, but it only covers the broader sectors and includes the whole of Europe. XS7R.L, XSPR.L, XS3R.L, XSDR.L, XSNR.L, XSIR.L, XSER.L, XS8R.L, XSKR.L, XS6R.L
Here's the link: http://www.etf.db.com/GBR/ENG/Download/O...eet/Retail
For the UK sectors the only direct way to trade them that I know of is through IG Index, as they let you trade 30+ of the UK sectors that I show on here. But don't include some of the smaller sectors that only have a few stocks in them. However, this is spread betting and CFDs only as it's IG and so can't be done in an ISA or SIPP.
I had a look, but DB won't do an individual sector, and most others after searching do a basket.
IG could well be the thing to do
(2014-10-11, 02:21 PM)isatrader Wrote: One thing to consider with trading sectors and indexes is that they are only averages of the individual stocks in them, and hence will only provide average returns. In order to generate above average returns for your portfolio overall you generally need to hit a few out of the park with 100%+ returns, as those big winners then cover the losers and mediocre returns of all the rest.
you are quite right, I didn't pay attention to the %ge return of the index vs the stock
In an individual the case of a winning trade for the same periods, given they are similar, BT averaged 30% higher return. Thats just one trade, im sure in total we would be looking at a much larger return.
Thanks so much for pointing out the error of my ways!
My name is George and I am very intersted in Stan's method. I have a question for you guys. Don t know if it was answered already. When you enter a stock do you wait for a weekly close above a certain level or you watch end of day close ?
(2014-10-17, 11:41 AM)Lplate Wrote: Hi George
Try this example SNAK.L http://stageanalysis.net/forum/showthrea...51#pid3551
Remember the more confirmation that you demand,, the more you may have to risk in the stop
That was fast! Thank you!
I read the post. I understand that the method asks for a weekly close above the resistance. What about the stop loss ? If you enter on a weekly close why exit on a daily price move ?
